Bill Summary – FastDemocracy

H-0393.1
                                HOUSE BILL 1581
     State of Washington       68th Legislature        2023 Regular Session
     By Representatives Wylie, Kloba, Reeves, and Ramel
     Read first time 01/25/23.      Referred   to   Committee   on   Regulated
     Substances & Gaming.
      AN ACT Relating to establishing a Washington state cannabis
  commission; amending RCW 41.06.070; adding a new section to chapter
  69.50 RCW; and adding a new chapter to Title 15 RCW.
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     NEW SECTION. Sec. 1. The legislature finds that the Washington
 state liquor and cannabis board exists to promote safe communities
 and public safety. However, there is no agency to oversee research
 and education of the cannabis industry within the state. The
 legislature therefore declares:
     (1) The Washington state cannabis commission is established to
 benefit the people of the state of Washington and its economy;
     (2) The general welfare of the people of the state will be served
 by the research and development of best practices surrounding safe
 cultivation and processing activities of cannabis. The industry is
 therefore affected with the public welfare; and
     (3) Creation of a Washington state cannabis commission for the
 public purpose of administering the revenue of the commission will
 materially advance the producing and processing of cannabis, improve
 sustainability in the producing and processing sectors, and thereby
 the public interest.
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     NEW SECTION.    Sec. 2.     To complement the development of a
 comprehensive regulatory scheme to regulate the production and
 processing of cannabis and cannabis products, the legislature
 declares that:
     (1) It is in the overriding public interest that state government
 support responsible agricultural production of cannabis in order to:
     (a) Protect the public by providing research and education in
 reference to the quality, care, and methods used in the production of
 cannabis and cannabis products; and
     (b) Support and engage in programs or activities that benefit the
 safe production, handling, processing, and uses of cannabis and
 cannabis products; and
     (2) The production of cannabis is a highly regulated industry.
 Other laws applicable to the cannabis industry include:
     (a)   Chapter 15.130 RCW, the food safety and security act;
     (b)   Chapter 15.125 RCW, cannabis and cannabis products;
     (c)   Title 69 RCW, food, drugs, cosmetics, and poisons; and
     (d)   Chapter 82.08 RCW, retail sales tax.
     NEW SECTION. Sec. 3. This chapter and the rules adopted under
 this chapter are for the purpose of fostering responsible and orderly
 agricultural production of cannabis. The legislature has granted
 authority to other state agencies to regulate the cannabis industry
 and nothing in this chapter should be interpreted to conflict with or
 supersede that other overriding regulatory authority.
     NEW SECTION.    Sec. 4.    The definitions in this section apply
 throughout   this  chapter   unless  the   context  clearly   requires
 otherwise.
     (1) "Board" means the Washington state liquor and cannabis board.
     (2) "Cannabis" has the meaning provided in RCW 69.50.101.
     (3) "Commission" means the Washington state cannabis commission
 established by this chapter.
     (4) "Cooperative" means a group of qualified medical cannabis
 patients as provided in RCW 69.51A.250.
     (5) "Department" means the Washington state department of
 agriculture.
     (6) "Director" means the director of the Washington state
 department of agriculture or the director's designee.
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     (7) "District" means each of the geographical divisions of the
 state of Washington established under section 8 of this act.
     (8) "Fiscal year" means the 12-month period beginning July 1st of
 any year and ending June 30th.
     (9)   "Interested   parties"   means    governmental   departments,
 agencies, and bodies at the federal, state, or local levels including
 tribal   governments,   as   well  as    universities,   national   and
 international associations, and other public and private sector
 organizations with an interest in cannabis-related matters.
     (10) "Processor" means any person or legal entity holding in its
 name a cannabis processor license issued by the board. This license
 type does not also hold a producer license.
     (11) "Producer" means any person or legal entity holding in its
 name a cannabis producer license issued by the board. This license
 type does not also own a processor license.
     (12) "Producer/processor" means any person or legal entity
 holding in its name both a producer and processor license.
     (13) "Retailer" means any person or legal entity holding a
 cannabis retail license issued by the board.
     (14) "Testing laboratory" means any laboratory accredited to
 conduct cannabis-related analysis.
     (15) "Tier" means any of the production licensing categories
 established by rule of the board.
     NEW SECTION.   Sec. 5.   The Washington state cannabis commission
 is established to:
     (1) Plan and conduct programs for cannabis-related matters;
     (2) Provide for conducting research as provided in commission
 rules;
     (3) Cooperate with and act in an advisory capacity to local,
 state, and federal agencies or other interested parties with respect
 to cannabis-related matters within the scope of the powers and
 purposes of the commission and as described in commission rules;
     (4) Cooperate with other interested parties toward standardizing
 methods by which to identify and determine the genetics, strains,
 cultivars, phenotypes, standards, and grades of cannabis and advise
 on packaging and labeling requirements with respect to the same;
     (5) Conduct reviews, surveys, and inquiries regarding market
 metrics and analytics, including trends, revenues, profitability,
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 projections, production, business practices, and other economic
 drivers of the industry;
     (6) Inform and advise producers and producer/processors in all
 matters regarding cannabis including, but not limited to, educational
 information on its cultivation, usage, risks, and related technical
 and scientific developments;
     (7) Provide cannabis-related education and training to producers,
 producer/processors, researchers, and their employees, including
 health and safety information;
     (8) Provide information and services for meeting resource
 conservation objectives of producers and producer/processors;
     (9) Assist and cooperate with local, state, or federal government
 agencies in the investigation and control of pests, diseases, and
 other factors that could adversely affect the cultivation, quality,
 or safety of Washington-produced cannabis;
     (10) Advance knowledge and practice of the production of cannabis
 in this state through the research and testing of methods to improve
 pest management, worker protection and safety training, energy
 efficiency, and environmental protection;
     (11) Foster conditions favorable to investment in the production
 of Washington cannabis consistent with state and federal laws;
     (12) Limit youth access and youth exposure to cannabis;
     (13) Enable cannabis producers and producer/processors of this
 state, in cooperation with the commission to:
     (a) Develop and engage in research including, but not limited to,
 discovering better and more efficient production, irrigation, odor
 mitigation, processing, transportation, handling, packaging, and use
 of cannabis and cannabis products; and
     (b) Discover and develop new and improved cultivars for the
 reliable and economical production of cannabis in the state;
     (14) Establish the uniform grading and proper preparation of
 cannabis products for market;
     (15) Protect the interest of consumers and the state by advising
 on the overall production of cannabis to assure a balanced and
 sufficient supply of cannabis and cannabis products of good quality
 at all seasons and times; and
     (16) Advance knowledge and the practices of processing cannabis
 in the state.
    NEW SECTION.   Sec. 6.   The commission may:
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     (1) Elect a chair and other officers by a majority vote of the
 commission or as contained in bylaws adopted by the commission;
     (2) Adopt, rescind, and amend bylaws and other internal rules of
 governance necessary for the administration and operation of the
 commission and for carrying out its duties under this chapter;
     (3) Administer, enforce, direct, and control the provisions of
 this chapter;
     (4) Employ and discharge at its discretion such administrators,
 staff, professional consultants and service providers, and other
 persons and firms that it may deem appropriate;
     (5) Designate a public records officer, rules coordinator, and
 other representatives required by the laws governing state agencies
 and commissions;
     (6) Comply with all other laws applicable to state agencies and
 commissions;
     (7) Acquire personal property and purchase or lease office space
 and other necessary real property and transfer and convey the same;
     (8) Institute and maintain in its own name any and all legal
 actions, including actions by injunction, mandatory injunction, or
 civil recovery, or proceedings before administrative tribunals or
 other governmental authorities necessary to carry out this chapter;
     (9) Keep accurate records of all its receipts and disbursements,
 which records must be open to inspection and audit by the state
 auditor or private auditor designated by the state auditor at least
 every five years and at any time by a duly appointed internal auditor
 upon a majority vote of the commission;
     (10) Make necessary disbursements for routine operating expenses;
     (11) Expend funds for all activities, projects, and undertakings
 of the commission permitted under this chapter;
     (12) Cooperate with other interested parties for the purposes of
 this chapter;
     (13) Serve as liaison with the board and all other interested
 parties on behalf of the commission and not for any individual
 producer or producer/processor;
     (14) Enter into contracts or cooperative agreements for research
 as provided in this chapter;
     (15) Enter into contracts or interagency agreements with any
 other interested parties to carry out this chapter in accordance with
 applicable provisions of Title 39 RCW;
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     (16) Solicit, accept, and expend or retain any gifts, bequests,
 contributions, or grants from private persons or public agencies to
 carry out this chapter;
     (17) Retain in emergent situations the services of private legal
 counsel to conduct legal actions on behalf of the commission,
 provided that the retention of a private attorney is subject to the
 appointment or approval by the office of the state attorney general;
     (18) Engage in appropriate activities and events for the purpose
 of supporting activities of the commission authorized by this
 chapter;
     (19) Participate in international, federal, state, and local
 hearings, meetings, and other proceedings in all matters relating to
 cannabis, including without limitation the production, irrigation,
 manufacture, regulation, transportation, distribution, sale, or use
 of cannabis including activities authorized under RCW 42.17A.635, and
 the reporting of those activities to the public disclosure
 commission;
     (20) Obtain from the board a list of the names and addresses of
 producers, processors, producer/processors, and retailers, and such
 other available data from the state as requested by the commission
 with respect to the discharge of the duties of the commission;
     (21) Acquire, create, develop, and own intellectual property
 rights, licenses, and patents and to collect royalties resulting from
 the sale or licensing of commission-funded research, provided all
 results and recommendations from research conducted or funded by the
 commission must be available to all producers and producer/processors
 without charge, except for reasonable out-of-pocket costs as the
 commission may determine;
     (22) Speak on behalf of the Washington state government with
 regard to agricultural production of cannabis in the state, subject
 to oversight of the director;
     (23) Possess cannabis products for the limited purposes of
 section 5 of this act;
     (24) Subject to section 7 of this act, adopt rules to implement
 this chapter; and
     (25) Exercise other powers and duties necessary to carry out this
 chapter.
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     NEW SECTION.     Sec. 7.    The department shall serve as the
 commission's rules coordinator. The commission's rules are subject to
 the director's approval.
     NEW SECTION.   Sec. 8.   (1) The commission shall consist of 13
 voting members: Eight producer or producer/processor members from the
 districts; one statewide at large producer or producer/processor
 member; one statewide tier one or equally small producer or producer/
 processor member; one statewide tier two or equally medium producer
 or producer/processor member; one statewide tier three or equally
 large producer or producer/processor member; and the director.
     (2)(a) A nonvoting advisory council is created to assist the
 commission. The director must appoint the following to the advisory
 council: One stand alone processor member and one testing laboratory
 member.
     (b) The advisory members must be considered from a pool of self-
 nominated active business representatives from each business type
 under this section.
     (3) Each member of the commission and the advisory council other
 than the director must:
     (a) Be 21 years of age or older;
     (b) Be a citizen and resident of this state;
     (c) Directly hold or be a named owner in whole or in majority
 part of an entity holding the relevant business license issued by the
 board. This license must not be suspended at the time of nomination,
 election, or appointment and must not be suspended at any time during
 the member's term;
     (d) Be engaged in the production of cannabis within the state of
 Washington for a period of three years and have, during that period,
 derived a substantial portion of their income therefrom. Any assignee
 by a licensee must be and have been, either individually or as an
 officer or employee of a corporation, firm, partnership, association,
 or cooperative, actually engaged in producing cannabis within the
 state of Washington for a period of three years and have, during that
 period, derived a substantial portion of their income therefrom; and
     (e) Continue to meet all membership qualifications throughout the
 member's term.
     (4) Producer or producer/processor members in voting positions
 must be producers or producer/processors with production facilities
 in the district in which they are nominated and elected. Producer or
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 producer/processor members elected to at large positions may be from
 any district.
     (a) District one, positions one and two, comprises the counties
 of Clallam, Island, Jefferson, King, San Juan, Skagit, Snohomish, and
 Whatcom.
     (b) District two, positions three and four, comprises the
 counties of Chelan, Douglas, Ferry, Grant, Kittitas, Okanogan, Pend
 Oreille, and Stevens.
     (c) District three, positions five and six, comprises the
 counties of Adams, Asotin, Benton, Columbia, Franklin, Garfield,
 Lincoln, Spokane, Walla Walla, Whitman, and Yakima.
     (d) District four, positions seven and eight, comprises the
 counties of Clark, Cowlitz, Grays Harbor, Kitsap, Klickitat, Lewis,
 Mason, Pacific, Pierce, Skamania, Thurston, and Wahkiakum.
     (5) The initial commission members shall be appointed by the
 director.
     (a) Four must be appointed for a one-year term.
     (b) Four must be appointed for a two-year term.
     (c) Four must be appointed by the director for a three-year term.
     (d) The initial members must be considered from a pool of self-
 nominated qualified producers or producer/processor from each
 district under this section.
     (e) Thereafter, commission members other than the director must
 be elected by a vote of qualified producers or producer/processors in
 each district for three-year terms.
     (6) If a member vacancy occurs, at the board's first meeting
 after the position becomes vacant, the remaining board members shall
 recommend to the director a qualified person for appointment to the
 vacant position. The director must appoint a replacement fro